In general, Worker's Compensation is not taxable and should not be included on the W2. You can enter the Workman's Compensation as negative Miscellaneous Income.
- Under Less Common Income select Miscellaneous Income, 1099-A, 1099-C
- On the Let's Work on Any Miscellaneous Income page, select Start to the right of Other reportable income
- On the Any Other Taxable Income? screen, select Yes
- On the Other Taxable Income screen enter the description "Worker's Compensation reported on W2," then the amount. Select Continue
- On the Other Miscellaneous Income Summary screen, select Done
See Is Workers' Comp Taxable? - The TurboTax Blog - Intuit
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